Common myths to becoming to entrepreneur and how to

overcome them
Entrepreneurship can be taught, it should be taught and it is being taught. After 50 years of
a flawed model focused on churning out executives for large corporations, colleges and
universities have turned their attention to promoting and encouraging entrepreneurship. These
schools are focusing on teaching the entrepreneurial lifestyle; one focused on both the mindset
and the skillset required to become an entrepreneur. Everything from university incubators to
mentor programs and pitch sessions are being offered.

Entrepreneurship is not about the risk you take, but the results that you achieve It’s a
startling paradox. Too many good opportunities die prematurely because so many potential
entrepreneurs are risk averse. At the same time businesses are failing because of absurd risks
fostered by the idea that being an entrepreneur is nothing more than a gamble. Entrepreneurs
succeed through determination — not by taking unwarranted risk. Managing risk as you embrace
it is critical. Not all ideas are opportunities and every opportunity is not viable.  Managed risk is
inherent in the lean startup focused on getting valuable feedback from potential end users before
jumping into a full-scale operation.

Entrepreneurs need to find work-life balance. Having a strong work ethic and being willing to
put in extended days when required is critical. During your startup phase and later when you
encounter bumps in the road, you will work long hours with great satisfaction. But as things
progress you need to find balance by building your team, easing control and empowering your
staff. You must recharge your batteries to persevere. Never forget: You are your most valuable
human resource. Without balance your performance will suffer, your business will be restrained
and your personal life will be sacrificed unnecessarily. 

Failure is not essential. Entrepreneurs manage their risk and avoid failure. Describing

failure as an essential part of success is rational, but many entrepreneurs are motivated more by
the fear of failure than the rewards of success.  Failure only happens when we either quit or are
forced to give up. Mistakes are part of the learning curve. We learn from them because we take
the time to analyze them. Success is elating and can mask our faults. Continually improve by
understanding what you do right and correcting what you do wrong in good times and in bad. If
you do experience failure, you can and will bounce back.

Being an entrepreneur is within your reach. You can become a problem solver who is
determined to find a way to make things happen. It is important to understand, we can’t all be
innovators but for every innovation there will be thousands of entrepreneurs finding applications
that solve everyday problems, while producing jobs and gaining independence.

Believe in your own ability. You can establish the mindset of an entrepreneur by eliminating the
word can’t from your vocabulary. You can approach problems by skipping right over the
question if it can be solved and moving directly to the question of how it will be solved.
You can find opportunity and you can analyze to make sure that opportunity is viable.  All of
this can be done within the context of the traditional economy, and you don’t have to be a tech
genius to do it. We are entering a new era of entrepreneurship, which means it is an option for
almost anyone.

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Factors Affecting Entrepreneurship

Entrepreneurship is a complex phenomenon influenced by the interplay of a wide variety of factors.
The entrepreneurial activity at any time is dependent upon a complex and varying combination of
economic, social, political, psychological and other factors. These factors may have been both
positive and negative effluences on the emergence of entrepreneurship. Positive influences
constitute facilitative and conductive conclusive for the emergence of entrepreneurship whereas
negative influences create inhibiting milieu to the emergence of entrepreneurship. Following factors
contribute to the success of entrepreneurship:

 
 

1. Personality Factors

Personality traits such as inner desire for control of their activities, tolerance for risk, high level of
tolerance to function in adverse situations and background experiences such as the family
environment, level of education, age and work history tolerance for ambiguity are important personal
characteristics that affect entrepreneurship. Individuals who are desirous of working independently;
willing to work for long hours and assume risk; are self-confident and hard-working are likely to be
more successful as entrepreneurs than those who do not posses these qualities

Personal factors, becoming core competencies of entrepreneurs, include:

 (a) Initiative (does things before being asked for)

(b) Proactive (identification and utilization of opportunities)

(c) Perseverance (working against all odds to overcome obstacles and never complacent with
success)

(d) Problem-solver (conceives new ideas and achieves innovative solutions)

(e) Persuasion (to customers and financiers for patronization of his business and develops &
maintains relationships)

(f) Self-confidence (takes and sticks to his decisions)

(g) Self-critical (learning from his mistakes and experiences of others)

(h) A Planner (collects information, prepares a plan, and monitors performance)

(i) Risk-taker (the basic quality).

2. Environmental factors

These factors relate to the conditions in which an entrepreneur has to work. If the environment that a
individual is working in is unsatisfactory, that is, not conducive to his growth needs, it is likely that the
individual will quit his job and start his own business as an entrepreneur. Unsatisfied personal needs
for growth and achievement in employment conditions results in successful entrepreneurship.

3. Political

 Some researchers felt that the growth of entrepreneurship cannot be explained fully unless the
political set-up of a country is taken into consideration. Political stability in a country is absolutely
essential for smooth economic activity. Frequent political protests, strikes, etc. hinder economic
activity and entrepreneurship. Unfair trade practices, irrational monetary and fiscal policies, etc. are
a roadblock to the growth of entrepreneurship

4. Socio-Economic Factors

The entrepreneurial activity at any time and place is governed by varying combination of socio-
economic factors. The empirical studies have identified the following socioeconomic factors:

 Cast/religion
 Family background
 Level of Education
 Level of perception
 Legitimacy of Entrepreneurship
 Migratory character
 Social Mobility
 Social Security
 Investment capacity
 Ambition/motivation

5. Economic Factor

Factors such as availability of finance, labor, land, accessibility of customers, suppliers are the
factors that stimulate entrepreneurship. Capital is one of the most important prerequisites to
establish an enterprise. Availability of sufficient capital affects the introduction, survival and growth of
a business enterprise. Capital is regarded as lubricant to the process of production. If we increase in
capital investment, capital output ratio also tends to increases. This results in increase in profit,
which ultimately goes to capital formation. Due to this capital supply increase, entrepreneurship also
increases.

6. Other Factors

 Entrepreneurial Education

More and more people with high academic attainments started joining the ranks of industrialists,
especially the professionals holding qualifications in engineering, law, medicine, cost and chartered
accounting. The newer entrepreneurs have a larger proportion of their floatation in the traditional
sector, but these professionals have by and large preferred to make their investments in modern
sector. The technicians in particular among both old and new entrepreneurs have entered industries
in the modern sector having a bearing of their academic qualifications. Many universities and
institutes are nowadays offering entrepreneurship education. A number of institutes have set up
successful entrepreneurship centers, which provide help to budding entrepreneurs by conducting
formal training and structured mentoring programs.

 Impact of Services Sector

 Increase in per capita income leads to a greater share of the services sector in the national
economy. The average size of firms’ m many sections of the services sector are relatively small.
This in turn promotes entrepreneurial activity across a number of service sector industries. Even for
some developing countries such as India, services account for over half of the total GDP. Growing
importance of services in the overall economy has paved the way for entrepreneurial activity. New
industries such as software and business process outsourcing have emerged and these have a
large number of entrepreneurial firms.

 Increasing Demand for Variety

 Increased wealth has led to increase in the demand for variety (Jackson 1984). The increasing
demand for new products is of advantage to smaller firms. A number of studies have shown the
comparative advantage of smaller firms in being innovative and coming up with new products . If the
products has unmet demand, it will create a market for itself. The success of entrepreneurship is,
therefore, dependent upon the extent to which the product is in demand. Changes in consumer
tastes are a major reason for growth of entrepreneurship. People are, inclined to products that are
specifically designed to meet their special needs. Mass produced homogenous goods do not enjoy
as wide an appeal anymore.

 Impact of Ethical Value System

 Max Weber was first to point out that the entrepreneurial growth was governed by the ethical value
system of the society concerned. He said that the spirit of rapid industrial growth depends upon a
rationalized technology, acquisition of money and its rational use for productivity and multiplication of
money. These elements depend upon a specific value orientation of individuals. Entrepreneurship
develops rapidly in those societies where ethical values provided independent capacity of decision-
making. No doubt, this view has some truth but it is not accepted universally.

 Internal Control System

Entrepreneurship largely depends upon the control system designed for controlling the business
activities. If the control system is effective they will result in optimal inventory, good quality products
and high profit margins. This will have a positive effect on the success of entrepreneurship.

Characteristics and Skills of an Entrepreneur

1. Leadership skills

Do you possess good leadership skills? Do people like your leadership and does your leadership
style inspire change? As a business owner, you must be able to manage your employees and the
teams involved.

Businesses that are meeting their goals and aspirations have gotten where they are because of
having leaders with the capacity to guide the businesses through the different challenges, but still
come out on the other side having achieved what they set out to do. Being a great leader means
that your employees work with you, question your moves at other times, and basically
communicate well with you just to ensure that your business reaches its goals.

“The quality of a leader is reflected in the standards they set for themselves.” – Ray Kroc
2. Excellent communication skills

For you to get the end product you had in mind when starting, you should be able to clearly
communicate your goals to all the teams involved in the production and processing process. An
entrepreneur needs to understand their employees, know their strengths or weaknesses, then help
them use these effectively, making the business and the employee better. This is only possible
through communication.

Communication must be two way and you should also listen. Good written and spoken
communication skills are important out of the business establishment as well. Communication is
integral when looking for funding, when handling complaints from customers, or when
negotiating new deals.
3. Ambition

To change the world with your business, you need to have ambitious projects. Ambitious
projects are often referred to as the disruptive ventures. To get on top of things and the industry,
yours should be the project that will disrupt the society’s status quo.

As an entrepreneur, your ‘holy grail’ is a product or a service that will shake up the industry
radically. This includes the ability to change the way people view things, interact or label things.

4. Risk taker

An entrepreneur is the definition of a risk taker. Business growth depends on your ability to dive
into the future of uncertainty while embracing all the challenges and the problems that will cross
your path. You should be willing to risk your money, time, and other unknown factors. To deal
with these risks and the unknown, you should set aside resources, bandwidth, and plans to deal
with the unknown.

5. Fearlessness

You cannot run a business when you are afraid of every turn you are about to make. Being a risk
taker requires a fearless spirit. There will be scary moments, but your ability to maneuver and
win over the fear is the power that will propel you and your business to greater heights.

6. Ability to listen to your gut instincts and to trust them

There isn’t one successful entrepreneur who faults or regrets trusting their instincts. In a normal
consumer life as well as the business world, you have to listen to that little voice and step out
when your gut says so.

As a result of the impressive results reported by entrepreneurs who always trust their instincts,
gut instincts have been dubbed the sixth sense. This sixth sense is very powerful and you should
be able and willing to trust and rely on it. It doesn’t matter what the rest of the team thinks.

7. Visionary

You cannot take on the entrepreneurship bull by the head and ride it without falling over or
getting it to trample on you if you have a solid vision in mind. Perceptive and creative business
visionaries tend to twist normal views, distorting reality and eventually change the way people
see the world. To be in the top entrepreneurial league, you should be able to cultivate these
visions in your mind so as to make the big breakthroughs, which could never be envisioned by an
ordinary person.

“The key to realizing a dream is to focus not on success but on significance — and then
even the small steps and little victories along your path will take on greater meaning.”
– Oprah Winfrey
8. Motivation and passion

The most important trait ingrained in successful entrepreneurs is passion in what one does and
the motivation to hit the big business storms every day without giving up. Because of passion,
you will stay up late to complete unfinished tasks, wake up earlier for your customers to get their
deliveries in time, work endlessly on the same thing without getting bored, willingness to make
the business better and stronger, and the ability to be in love with that which you wake up to,
every day. Without this and the internal motivation to make things work, you will not succeed in
business.

9. Tech savviness

You don’t have to be a pro in all matters tech and programming but in this digital age, you
should have the least possible capacity to market your products or services online and to connect
to your customers, competitors, or suppliers through social media platforms. Digital marketing is
crucial and you should do some basic SEO. You should also use the company’s and your
personal social media platforms to build and enhance your business brand.

10. Good financial management skills

You need to manage your money. Even when you have a CFO, you still have to control things
and help in making business decisions concerning money. Besides financial management, you
must have the ability and the capacity to raise funds. To get investors interested in your business,
you should be able to show them what you have and what their investment can do for your
business.

In conclusion, the success of your business depends on these skills and traits. A rapidly growing
business is one that is not only disruptive, but also one that leaves a positive impact in society.
Your goal in business shouldn’t just be raising a lot of money, but you should have the vision to
change things around to benefit the whole society.

Entrepreneur V/S Manager?

The main difference between Entrepreneur and Manager is their role in the organization.
Entrepreneur is the owner of the company whereas Manager is the employee of the company.
Entrepreneur is a risk taker, they take financial risk for their enterprise. Entrepreneur has a vision
and focuses on achievements and profit.
The responsibility of the Manager is to run the organization, control it and make sure everything
is working smoothly. Manager works for salary and does not take any risks.

Comparison Chart

BASIS FOR
ENTREPRENEUR MANAGER
COMPARISON

Manager is an individual who

Entrepreneur refers to a person who
takes the responsibility of
Meaning creates an enterprise, by taking
controlling and administering the
financial risk in order to get profit.
organization.

Focus Business startup Ongoing operations

Primary motivation Achievement Power

Approach to task Informal Formal

Status Owner Employee

Reward Profit Salary

Decision making Intuitive Calculative

Driving force Creativity and Innovation Preserving status quo

 Risk orientation Risk taker Risk averse

Evolution of Entrepreneur, Entrepreneurship

The majority of wealth in the hands of the ruling class, owning one’s own business was a rare
sight. The old-world entrepreneurs mostly consisted of merchants and craftsmen. Plenty of
merchants created their own business, but a lot of the time the business and connections were
handed down generation to generation. Skilled craftsmanship was another family affair, but
anyone with the right connections that was lucky enough to land an apprenticeship and succeed
at it we’re able to climb the economic ladder a little higher.

Merchants started to take over be more prominent as the world market grew because of
exploration and sailing and shipping became easier. It wasn’t until the industrial age when the
big business was back in a central location. Inventors were a large part of the entrepreneurial
field. Using new technology, manufacturing, transportation and ingenuity, inventors dominated
the industrial age.

The 20th century was the home of the media kings. Radio, television and film blew up creating
new industries across the globe. Finally, our current Information Age came upon us in the 80’s.
Since then moguls have been materialized from one single good idea worth billions upon billions
of dollars.

Entrepreneurs have shaped the face of business and enterprise since the dawn of man. From the
first wheel to the advent of the internet, these clever businesspeople evolved for centuries into
their most recent incarnation, the social media entrepreneur.

We’re no longer cave-people, but we still have some things in common with our ancestors.

Instead of using the internet as a forum for their business, today’s social media entrepreneurs are
reshaping it to fit their businesses. These social media entrepreneurs thrive on connectivity.

The Evolution of Entrepreneurship

The need and the constant necessity for a good leader is one of the many factors that drive the
evolution of entrepreneurship. Besides this, there are a few other factors:

 Trading: With the improvement in communication between the countries and the advancement
in transportation, start the process of trading.
 Advent of stable specialization and communities: When more and more individuals start to
settle in secure communities, a huge change was noticed in their lifestyles. Each group had a leader who
 was qualified and specialized in one task and that helped in speeding the development of leadership
skills and innovation.
 Need of independent career: More and more people are looking for a career path that is totally
independent. The majority started to take risks by developing their own businesses in order to achieve
maximum benefits.